The Port Adelaide Football Club has announced a net loss from continuing operations of $278,806 for the financial year ending 31 October 2020.

Throughout Port Adelaide’s 150^th year the incredible support from the club’s members and partners in the face of a global pandemic enabled the club to finish the financial year in a considerably better position than was originally forecast when the AFL competition shut down in March 2020.

Despite this support the club was materially impacted by COVID-19, with a decline in operating revenue of 32 per cent ($18.65m) on the previous year which saw a profit of $512,091. Core revenues from all areas were impacted including significant gate and hospitality revenue reductions with only seven home games played to restricted crowds.

In order to protect the club’s financial position and future, the organisation had to be re-engineered quickly which meant significant and rapid cost reductions were implemented, cutting the cost base by 31 per cent ($17.86m) across the year.

Port Adelaide chairman David Koch said the significant impact led to a restructure across both the football department and administration forcing the club to farewell many loyal and much-loved people from the club.

“COVID-19 became the greatest financial threat in the club’s history and, as a result, we were forced to make some extremely tough decisions through 2020, which sadly meant farewelling some fantastic Port Adelaide people,” Mr Koch said.

“That was a horrible reality for us in 2020 and it is a challenge the whole industry has had to deal with, but decisions needed to be made to ensure our club was positioned to come through this extremely challenging time.”

After taking in to account one-off COVID-19 related and restructuring costs of $1.186m, depreciation and non-cash balance sheet adjustments, the Port Adelaide Football Club incurred a statutory loss of $4,040,579.

As a result, the club finished the season with additional borrowings of $4.275 million, increasing its overall debt position to $12 million.

Mr Koch said although that figure was significant the club is confident it can reduce its debt quickly.

“After making sure our football department was fully funded, over the last couple of years we had started to pay down our debt. But COVID-19 proved to be an unexpected and severe setback to our debt reduction plans, but we have great confidence to accelerate again thanks primarily to the incredible support we are already seeing from our members and key stakeholders, ” he said.

“However, whilst we suffered financially like most businesses during 2020, we saw continued growth from our football program, falling just short of a Grand Final appearance. The club is in a great position to challenge in 2021.

“Off the field our passionate members and supporters ensured we finished 2020 materially better than we could have ever expected. 95 per cent of our members pledged their 2020 membership funds to the club, despite the reduction of crowds at Adelaide Oval.

“And from a commercial perspective, after welcoming GFG as a major partner in 2019, we added MG as our second joint major partner for the 2020 season and late in 2020 signed KFC as the club’s third joint major partner, the first time in our history we have had three joint major partners.

“Other important business metrics are also showing 2021 is looking much better for the club. Membership, hospitality and commercial partnerships are all tracking strongly against budget.

“The entire Port Adelaide Football Club from our board to our executive team, staff and playing group have worked tirelessly to keep the club going through some extremely challenging circumstances this season. I would like to extend my thank you to every one of them for their efforts.”

Port Adelaide Football Club members can obtain access to the club’s 2020 accounts by contacting the club after tonight’s Annual General Meeting.